Outcome: $3,650,000 Settlement
Nguyen, et al. v. Educational Computer Systems, Inc. d/b/a/ Heartland ECSI, Case No. 2:22-cv-01743-PLD, in the United States District Court for the Western District of Pennsylvania
Tycko & Zavareei LLP and co-counsel were appointed class counsel in a class action settlement concerning “pay to pay” fees charged by Educational Computer Systems, Inc. (doing business as Heartland ECSI) between December 6, 2018, and October 31, 2023. The lawsuit, filed in December 2022, alleged that Heartland ECSI violated the covenant of good faith and fair dealing and several state laws by imposing these fees on student loan payments made via telephone, IVR, or the internet.
After extensive settlement negotiations, the parties agreed to a settlement that included a non-reversionary fund of $3,650,000 to compensate affected borrowers who were charged the fees. The settlement benefited student loan borrowers who were burdened by Heartland ECSI’s unlawful fees on top of their student loan debt.